In 2017，the world economy enjoyed a period of recovery. However，foreign direct investment（FDI）continued to decline. The drop was the highest in the last 15 years，including the slowdown witnessed during the 2008-2009 global financial crisis.

Regionally，the United States and Europe continue to be favored by investors. By sector，investment is still concentrated in service industries. Regarding modes of investment，both cross-border M&A and greenfield investment have declined. Even though protectionism has spread globally，international investment policies trend towards openness and facilitation.

Impacted by the strengthening of domestic and foreign investment policy supervision，and increasing US restrictions on China’s investment sectors，in 2017，Chinese enterprises’ total foreign investment declined for the first time in a decade. Among key trends，investment has shifted from North America to Europe and Asia；investment entities are more diversified；the preferred investment mode is cross-border M&A，and greenfield investment continues to decline. Sector-wise，investment is mainly concentrated in the manufacturing industry，particularly high-end manufacturing.

This report summarizes the situation and characteristics of global foreign investment，particularly by Chinese enterprises，from 2017 to 2018. It analyzes factors behind the decline in FDI，including international politics，economy，and the investment environment. The report outlines five major challenges that Chinese enterprises face overseas and provides corresponding countermeasures and suggestions for Chinese enterprises.